Speculation that new President Donald Trump could benefit homebuilder equities and the related exchange traded funds is showing signs of coming to fruition.
ITB and XHB surged Tuesday after D.R. Horton (NYSE: DHI), the largest U.S. homebuilder, reported its highest growth in orders in over a year, revealing the underlying strength of the housing market.
D.R. Horton and other homebuilders also strengthened on data showing U.S. home resales dipped more than expected in December as the supply of houses on the market fell to levels last seen in 1999, reports Arunima Banerjee for Reuters.
Horton revealed that orders, an indicator of future revenue for homebuilders, increased 14.6% to 9,241 homes in the quarter ended December 31. The company saw good sales trend in January very early into Spring.